American Axle's 1Q Earnings Plunge - Analyst Blog
03 May 2013 - 10:56PM
Zacks
American Axle and Manufacturing Inc. (AXL)
reported earnings of $18.6 million or 23 cents per share before
debt refinancing and redemption costs in the first quarter of the
year that plunged 62.3% from 61 cents per share in the comparable
quarter of 2012 (excluding special items). Nevertheless, earnings
surpassed the Zacks Consensus Estimate of 15 cents during the
quarter.
On a reported basis, net earnings were $7.3 million or 10 cents per
share in the quarter versus $51.2 million 68 cents in the first
quarter of 2012.
Revenues were almost flat at $755.6 million compared with $751.5
million in the first quarter of 2012 and missed the Zacks Consensus
Estimate of $757 million. The company’s revenues reflect the
adverse impact of roughly $12.5 million related to the labor strike
at General Motors’ (GM) Rayong plant in
Thailand.
American Axle’s content-per-vehicle – dollar value of its product
sales supporting GM’s North American light truck and SUV programs
and Chrysler's heavy duty Dodge Ram pickup trucks – increased 2.0%
to $1,504 from $ $1,475 in the first quarter of 2012.
However, the company witnessed a reverse trend in diversification
of its customer base during the quarter. The company’s non-GM sales
decreased 2.8% to $188.1 million from $193.6 million in the
year-ago quarter.
Gross profit dipped 25.1% to $104.3 million or 13.8% of sales from
$139.2 million or 18.5% in the first quarter in 2012. Meanwhile,
operating income slashed 42.2% to $44.7 million or 5.9% of sales
from $77.4 million or 10.3% a year ago.
American Axle had cash and cash equivalents of $100.8 million as of
Mar 31, 2013, up from $62.4 million as of Dec 31, 2012. Long-term
debt increased to $1.6 million as of Mar 31, 2013 compared with
$1.5 billion as of Dec 31, 2012.
The company had lower operating net cash flow use of $26.8 million
compared with $71.5 million in the first quarter of 2012. Net
capital spending of the company was $47.8 million compared with
$43.6 million in the same period of 2012. Therefore, American Axle
had narrower free cash flow use of $70.7 million in the quarter
compared to the use of $115.1 million in the corresponding period
in 2012.
American Axle is a leading supplier of driveline systems, modules
and components for the light vehicle market. The company makes
axles, driveshaft and chassis components for light trucks, sport
utility vehicles and passenger cars.
The company with its numerous new global product and process
launches featuring advanced driveline technology, and customer
diversification expects to grow in the future. Currently, it
retains a Zacks Rank #3 (Hold).
Other stocks that are performing well in the industry include
Visteon Corp. (VC) and STRATTEC Security
Corp. (STRT). They carry a Zacks Rank #1 (Strong Buy).
AMER AXLE & MFG (AXL): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
STRATTEC SEC CP (STRT): Free Stock Analysis Report
VISTEON CORP (VC): Free Stock Analysis Report
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